The Bank of England cut its benchmark interest rate by 25bps to 4.5% in its January 2025 decision, as widely expected, marking the third rate cut since the start of its cutting cycle in August last year. All nine members of the Monetary Policy Committee voted for the rate cut, compared with 8-1 odds, while two members voted for a sharper 50bps cut, including hawkish Catherine Mann. The Bank maintained its stance that monetary easing is expected to be gradual this year, as rising growth concerns weigh on underlying services inflation. However, the Bank revised its growth forecasts for the current year downwards as economic activity has underperformed expectations since November, suggesting a dovish shift in the balance of risks between growth and higher prices in the near term. (Newsmaker23)

Source: Trading Economics